Hyderabad Outpaces Bengaluru in Attracting GCCs Over the Past Two Years, Says Telangana IT Minister

Telangana Emerges as Key Beneficiary of India's AI and Data Centre Push

Telangana is at the forefront of India's artificial intelligence (AI) and data centre expansion, with the state's IT and Industries Minister, D Sridhar Babu, citing sustained focus on infrastructure development and GCC-friendly policies as key drivers of its success.

According to the Nasscom-Zinnov report, Hyderabad is home to approximately 515 Global Capability Centres (GCCs), compared to around 1080 in Bengaluru. The gap between the two cities is narrowing, with Hyderabad seeing a surge in new GCC additions over the past two years. In fact, every third or fourth day, a new GCC is established in Hyderabad, a trend not seen in Bengaluru.

Hyderabad's competitive advantage lies in its digital infrastructure, physical infrastructure, and talent pool, making it an attractive destination for GCCs. The state's focus on AI is also expected to attract more GCCs, as it looks to take a lead from Bengaluru in this area.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

GCC Demand by Sector

Hyderabad has a significant presence of GCCs in the BFSI space, as well as defense, aerospace, and hospitality sectors. The state is also home to L'Oreal's first-ever GCC in the beauty tech space, and is poised to attract more companies in this niche area.

Future Plans

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Last year was marked by significant policy and infrastructure announcements in Telangana, including the AI Innovation Hub and the GCC Policy. The state is now concentrating on AI, with a focus on agentic AI and super intelligence. The AI Innovation Hub will provide a platform for re-skilling and up-skilling of talent, which will benefit not only Hyderabad's GCCs but also companies globally.

Data Centres

Telangana is also looking to establish itself as a major player in the data centre space. The state is creating an ecosystem for data centres, with a couple of existing centres functioning like AWS and CtrlS. Hyderabad is the first choice of many leaders interested in setting up data centres, and the state is providing resources like water and power to support this growth.

World Economic Forum Summit

Telangana is also set to host a World Economic Forum (WEF)-like summit in July-August, with the state's Chief Minister having proposed the idea. The summit is expected to be a major event, and Telangana is hopeful that it will materialise.

Skyroot Aerospace

The recent achievement of Hyderabad-based Skyroot Aerospace becoming India's first spacetech unicorn is a testament to the state's innovative spirit and entrepreneurial drive. The company's success is attributed to the policies at the national level, the ease of doing business, and encouragement by the Telangana government, as well as the founders' technological strength and vision for the future.